If the ‘sport’ of revenue management was similar to the sport of golf, mulligans would come up clutch for today’s revenue managers. Unfortunately, in the game of real life, real money is left on the table if a revenue manager acts on a gut feeling that doesn’t pan out the way that they originally thought.
Today’s leading revenue management systems are giving the gift of predictive analytics to allow you to truly understand the impacts of your hunches before setting them in motion. Scenario analysis capabilities in automated revenue management systems allow you to explore performance outcomes if a decision is changed or if guest behavior (demand or wash, for example) differs from the current expectations.
You can also use this gifted capability to learn how sensitive your system is to changes in particular inputs. Utilizing this type of scenario feature is quick and easy, allowing you to experiment more – really understanding how and why pricing and availability recommendations are made in a very intuitive way.
You may not be able to predict every future revenue-related outcome on your own, but you can predict that your revenue management system will gift you with the capabilities to do so.